Strait of Hormuz Reopens to Shipping Following U.S.-Iran Agreement

May 25, 2026

Following a U.S.-Iran agreement, the Strait of Hormuz is reopening to shipping, with oil and LNG tankers now heading to Asia. The reopening follows a "U.S.-Israeli war on Iran" that began Feb. 28 and severely curtailed traffic through the chokepoint, which handles a fifth of the world's oil. While some vessels are moving, shippers remain cautious and about 20,000 seafarers are still stranded in the Gulf.

Strait of Hormuz shipping resumption

▪The reopening is expected to lower global oil prices and ease costs for transport, manufacturing, and food
▪Shippers remain cautious and said they would need an extended period of calm before resuming normal sailing
▪An agreement between the U.S. and Iran has reopened the Strait of Hormuz to shipping

U.S.-Israeli war on Iran

▪A "U.S.-Israeli war on Iran" that began on February 28, 2026, had severely curtailed shipping through the strait
▪The Strait of Hormuz is a critical chokepoint through which about a fifth of the world's oil and LNG supply normally flows

LNG tanker movements

▪The LNG tanker Al Rayyan passed through the waterway with a cargo from Qatar and is expected in China on June 27, 2026
▪The Al Hamra tanker, managed by Abu Dhabi National Oil Company (ADNOC), also crossed the strait and was tracked off the coast of India on May 23, 2026
▪Abu Dhabi National Oil Co. has been using its own fleet and "dark transits," where vessels switch off transponders, to move shipments
▪The LNG tanker Fuwairit crossed the Strait of Hormuz on May 25, 2026, and is expected to deliver its cargo in Pakistan

Crude oil tanker movements

▪The supertanker Eagle Verona exited the strait around May 23, 2026, with nearly 2 million barrels of Iraqi Basrah crude for China
▪The Eagle Verona had been stranded for nearly three months before its departure
▪In the week prior to May 25, 2026, three other Very Large Crude Carriers (VLCCs) carried 6 million barrels of crude to China and South Korea

Stranded seafarers in Gulf

▪Before the conflict, shipping traffic through the strait averaged 125 to 140 daily passages
▪Approximately 20,000 seafarers remain stranded on hundreds of ships in the Persian Gulf

Iran transit route requirements

▪Iran has ordered ships to use a specific transit route, which a handful of supertankers have used in May 2026
▪Malaysia had sought permission for seven ships to transit the strait; five have since exited the waterway